Jim Cramer on M&A Monday and Raytheon's Merger With United Technology
Happy M&A Monday!
Markets Donald Trump announced the "indefinite" suspension of tariffs planned on goods imported from Mexico after reaching an agreement with the Mexican government to tackle illegal immigration, but also warned that if cooperation falls short "we can always go back to our previous, very profitable, position of tariffs." And then President Trump hopped on a call with CNBC to further discuss his thoughts on the Federal Reserve, the suspended tariffs on Mexico and he weighed in on the Raytheon and United Technologies deal.
Raytheon's Merger With United Technology Raytheon and Real Money Stock of the Day United Technologies announced that the companies are planning on an all-stock merger.
The companies would combine to become Raytheon Technologies.
According to the Wall Street Journal, Raytheon Technologies --which would be valued at more than $100 billion after planned spinoffs, would become the world's second-largest aerospace and defense company by sales behind Boeing .
Acquisition Madness Mergers aren't the only thing to keep an eye on Monday morning.
Salesforce announced that it was acquiring Tableau Software for around $15.7 billion.
The deal gives Tableau investors 1.103 in Salesforce stock and should increase the combined group's sales by between $300 million and $400 million, the companies said, with a new forecast of between $16.45 billion and $16.65 billion, an increase of around 35% year-over-year.
Salesforce's fiscal 2020 earnings will, however, likely be reduced by about 75 basis points, year-on-year, with non-GAAP earnings now pegged in a range of $2.51 to $2.53 per share, down from last week's forecast of $2.88 to $2.90 that followed stronger-than-expected first quarter earnings.
And Merck announced that it was planning to buy Tilos Therapeutics for over $770 million.
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